Single-family home sales inch up

Sales of single-family homes increased 11.7 percent in February to 1,098, but inventory of homes for sale rose 1.7 percent to 22,497, the Greater Las Vegas Association of Realtors reported.

Statistics compiled from the Multiple Listing Service continue to show trends similar to previous months, Realtors association president Patty Kelley said Tuesday.

Median home prices declined slightly to $246,500, down 1.4 percent from January and down 20.6 percent from the same month a year ago.

Lower home prices are mainly due to a large number of short sales, or homes sold for less than the balance owed on the mortgage, and bank-owned homes being sold at reduced prices, Kelley said. They accounted for 41.5 percent of February's sales.

"There's light at the end of the tunnel because we had a 12 percent increase in sales," she said. "We're seeing a lot more activity in the market now. I talked to some Realtors this morning and people are actually smiling when I see them. We're weaning through foreclosures and getting foreclosures sold one by one. It's a lot more promising."

Bargains abound with some homes selling for less than what it would cost to build them today, Kelley said.

Real estate consultant John Burns said wise builders are adjusting their product offerings to appeal to a larger segment of buyer demand in this down housing market.

Builders are lowering costs per square foot and the overall home price by changing from larger floorplans to smaller, more compact designs and offering a variety in home sizes, he said. Sometimes it's as easy as removing living and dining rooms or shrinking the size of rooms.

"Rarely would you decrease the number of bedrooms," Burns said.

Foreclosure properties present a great buying opportunity, Kelley said, but buyers can't expect similar prices for all homes.

"We get calls from all over the country because everyone wants to know what's going on in Las Vegas," she said. "Everybody wants to come here."

For condos and townhomes, the median sales price fell to $150,000 in February, a 7.4 percent decline from the previous month and 26.5 percent decline from a year ago. Inventory of units for sale dropped to 5,380, eight fewer than the previous month and a 2.6 percent decline from a year ago.

Kelley said another positive development is last week's announcement that the Federal Housing Administration is raising loan limits in Clark County from $304,000 to $400,000.

"That's a huge thing because of the fact we have so many service workers in the casinos and they can easily get an FHA loan. The guidelines are more relaxed than a conventional loan," she said.

Association statistics are based on data collected through the MLS and do not necessarily account for newly constructed homes sold by local builders and other transactions not involving a Realtor.

Contact reporter Hubble Smith at hsmith@reviewjournal.com or (702) 383-0491.